The S&P 500 Challenging the 200sma Again!
The S&P 500 appears to be making a comeback following the 32% fall in Febrauary and March 2020.
But the probable comeback is still in the early stages where there is uncertainty.
We can clearly see from the chart that the fall was caught by the December 2018 low at $2,346.
After price hit this support level it quickly reversed back to the upside.
Two things can happen from here.
Price might be forming a bearish flag which means that the current move up is merely a pullback
which should then be followed by another move down.
Or, price may approach the resistance level in the form of the 200 simple moving average and
then resume the overall 11-year bull trend.
Price tagged the 200sma last week but failed to penetrate it, but as it appears to be approaching
the 200sma once more, it may just have enough momentum to push above it.
These are interesting times because if we do see another move to the downside then we will be
entering into the first bear market since 2008/2009.
We are still standing aside from entering investments in stocks until we have more clarity based
on price action and we are focusing our attention on the forex market which is currently active.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
But the probable comeback is still in the early stages where there is uncertainty.
We can clearly see from the chart that the fall was caught by the December 2018 low at $2,346.
After price hit this support level it quickly reversed back to the upside.
Two things can happen from here.
Price might be forming a bearish flag which means that the current move up is merely a pullback
which should then be followed by another move down.
Or, price may approach the resistance level in the form of the 200 simple moving average and
then resume the overall 11-year bull trend.
Price tagged the 200sma last week but failed to penetrate it, but as it appears to be approaching
the 200sma once more, it may just have enough momentum to push above it.
These are interesting times because if we do see another move to the downside then we will be
entering into the first bear market since 2008/2009.
We are still standing aside from entering investments in stocks until we have more clarity based
on price action and we are focusing our attention on the forex market which is currently active.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
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